Good day. I'll keep this brief.
Division 2 provides for a minor technical amendment to the Canada pension plan that in certain cases will modify the calculation of the child-rearing drop-in. The child-rearing drop-in was introduced in BIA 1 and will be implemented in January 2019. This provision will increase the enhanced portion of the CPP for parents who stop working or reduce their participation in the workforce to take care of a child under the age of seven.
The proposed technical amendment will allow for the pro-ration of the drop-in amount in rare cases when the drop-in does not apply to a full year. This would be the case when a person's contributory period begins or ends during a year in which the drop-in is applied: for example, where an individual reaches 18 in a year that the drop-in would be applied, or where an individual dies, begins his retirement pension or reaches the age of 70 in a year in which a drop-in applies.
I am happy to answer any questions you may have on this.